Longhorn Publishers emerged from a full-year Net Loss of KSh 225.9 Million in 2020 to a Net Profit of KSh 7.5 Million in 2021.
The publisher’s Balance Sheet size, according to its audited accounts for the year ended June 30th 2021, grew to KSh 2.9 Billion in 2021 to KSh 2.5 Billion in 2020 while Revenue increased from KSh 1.1 Billion in 2020 to KSh 1.2 Billion in 2021.
The firm made a Pre-Tax Profit of KSh 17.8 Million in 2021 from a Pre-Tax Loss of KSh 295.4 Million in 2021 while Gross Profit increased to KSh 497.4 Million in 2021 from KSh 487.3 Million in 2020.
Total Comprehensive Income increased to KSh 6.2 Million in 2021 from a total comprehensive loss of KSh 227.9 Million in 2020.
According to its directors, Longhorn Publishers was impacted by the COVID-19 pandemic including extended suspension of learning in schools and constrained consumer wallets.
Kenya and Uganda began the year with schools closure and movement restrictions as part of the pandemic containment measures.
Revenue for the year increased by 16% to KSh 1.244 billion compared to the previous year.
Kenya recorded an 18% revenue growth, Tanzania 8% while Uganda recorded 83% for the year. Tanzania marked the 4th straight year of revenue growth while Uganda surpassed US$ 1 million in revenue despite the country being under lockdown for most of the year.
The operating expenses for the year decreased by 53% compared to the previous year due to the cost containment measures implemented during the year such as renegotiation with suppliers and the streamlining of operations.
Finance costs increased by 21% which was attributable to the investments the Group continues to make in regional expansion, product diversification and the digital transformation journey.
Management intends to reduce the loan balances progressively as the Group’s performance improves.
Borrowings and finance costs have reduced by approximately 30% in Q1 of 2022 financial year. Profit before tax was Shs 17.8 Million compared to the prior-year loss before tax of Shs 295 Million.
This marked a significant turnaround in the business, confirming the resilience of Longhorn’s business model, strong brand, agile employees and ability to adapt to a changing operating environment.
In its outlook, Longhorn Publishers is upgrading its eLearning and eBook platforms which are anticipated to be launched in Q2 of 2022. New products such as SOMO are being developed to serve the ex-curriculum space.
The Group continues to take advantage of opportunities and revenue is expected to grow in the African markets including the DRC and Cameroon, which it entered in 2020. Plans to enter the Ghana market are at advanced stages.
The significant titles developed in the year included primary and secondary coursebooks in Uganda, approval of CBC Grade 6 titles in Kenya, as well as English and French titles in Cameroon.
The development of titles in both course and non-course books will continue as part of Longhorn Publishers product development.
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